Largest Hedge Fund Operator Ray Dalio Stricken by Emerging Markets

Nasdaq – Investor Ray Dalio , founder of the $150 billion hedge fund Bridgewater Associates, has developed a unique view of the economy, comparing it to a machine. In March, he told CNBC that he expects stocks to perform well over the short term, but foresaw a pullback after that:

“I think what has been artificial is that there has been a lot of printing of money which has driven short-term interest rates down to make cash a terrible investment and to make bonds a terrible investment, both the printing of money and the seeking of safe returns have driven money into cash, and so with the negative real return of about 2% in cash and half a percent in bonds, that’s a bad investment. As a result there’s a reaching for return and that’s driven other assets up, and there’s a beginning of a leveraging process, and that is good for assets over the near term. So I think that assets will continue to appreciate, but there will also be a tightening ahead.”